SENATE BILL REPORT
SB 6464
BYSenators Nelson, Bender, Bluechel and Vognild
Providing funding for transportation projects.
Senate Committee on Transportation
Senate Hearing Date(s):February 1, 1988; February 4, 1988
Majority Report: That Substitute Senate Bill No. 6464 be substituted therefor, and the substitute bill be referred to Committee on Rules without recommendation.
Signed by Senators Patterson, Chairman; Nelson, Vice Chairman; Bender, Conner, Hansen, McMullen, Metcalf, Sellar.
Minority Report: That Substitute Senate Bill No. 6464 not be substituted therefor, and not be referred to Committee on Rules.
Signed by Senator Barr.
Senate Staff:Gene Schlatter (786-7316); Louise Bray (786-7322)
February 8, 1988
AS REPORTED BY COMMITTEE ON TRANSPORTATION, FEBRUARY 1, 1988
BACKGROUND:
Revenue shortfalls have been identified by cities, counties and the Washington Department of Transportation (DOT) for street, roads and highways. DOT shortfalls have been projected at $179 million for 1989-91 biennium and $ 287 million for 1991-93 biennium. Cities and counties have backlogs of unsolved transportation problems exceeding $2.1 billion.
Rapid economic development, especially in suburban areas, is creating severe traffic congestion problems that are not being addressed. In recognition of the importance of developing methods to ensure improved responsiveness of highway programming in areas of rapid economic development, the Legislative Transportation Committee chairman, in 1986, convened the Task Force on Transportation/Economic development Issues. One of the Task Force recommendations was creation of a new board to deal with multi-jurisdictional and suburban arterial congestion problems that included local government and/or private financial participation.
The fuel tax of 18 cents per gallon is distributed as follows: (1) dedicated 17 cent formula distribution 7.12 percent to the Urban Arterial Trust Account, 22.78 percent to the counties, 11.53 percent to the cities, 3.15 percent to ferry operations, 3.21 percent to ferry capital construction, 6.95 percent to state urban highways, and (f) 45.26 percent to DOT (for highway purposes); (2) one cent dedicated distribution, 1/3 cent to Rural Arterial Program , 1/3 cent to Urban Arterial Program, and 1/3 cent to state highway construction.
SUMMARY:
The motor vehicle fuel tax rate is increased by five cents per gallon July 1, 1988 and another 4 cents per gallon July 1, 1989, for a total nine cent per gallon increase. The Motor Vehicle Fund "revenue limit"' established in 1977 in conjunction with the variable gas tax rate, is eliminated.
Revenues generated by the fuel tax increase are allocated as follows: Rural Arterial Program July 1, 1988 through June 30, 1991 - one-third cent. Transportation Improvement Account July 1, 1988 through June 30, 1989 - two cents; July 1, 1989 through June 30, 1991 - three cents. State Highway Purposes (Categories A, H and C - subject to priority programming in Ch. 47.05 RCW) July 1, 1988 through June 30, 1989 - two cents; July 1, 1989 through June 30, 1991 - four cents. Special Category C Account (for Category C projects which, due to high cost only, will not receive funding in the foreseeable future) from July 1, 1989 - one cent. City-County Arterial Preservation Account July 1, 1988 through June 30, 1991 - two-thirds cent.
The Transportation Improvement Board (successor to the present Urban Arterial Board) is created, composed of six county representatives, six city representatives, and three DOT representatives. Appointment of city and county members is by the governor, from a list of two nominees for each position submitted by the Washington Association of Counties and Association of Washington Cities, respectively. Members serve four-year terms (staggered), with initial appointments to be made by July 1, 1988.
The board shall allocate funds in the Transportation Improvement Account (TIA) (after payment of board expenses) by June 30 of each year. Eighty-seven percent is for counties, cities over 5,000 population, and transportation benefit districts for county, city and multi-agency arterial improvement projects. Projects must be consistent with state, regional and local transportation plans, necessitated by existing or reasonable foreseeable congestion attributable to economic development or growth, and partially funded by local government and/or private developer contributions. If the local and/or private funding is not certified to the board within one year of the board's approval of the application, the board may reallocate the TIA funds. Thirteen percent is for cities under 5,000 population, to be allocated as determined by the board.
The Transportation Commission, by October 1 each year, is to develop and submit to the Transportation Improvement Board a list of special category C projects with priorities and funding recommendations.
City-County Arterial Preservation Account funds are available to cities and counties, through the Transportation Improvement Board, for projects based on need as identified by the pavement management system. The funds are to be allocated between cities and counties based on lane miles.
The board is to report to the Legislative Transportation Committee by January 15, 1989, and annually beginning July 1, 1989.
EFFECT OF PROPOSED SUBSTITUTE:
The tax is reduced to 7 cents per gallon and the implementation dates are changed from July 1, 1988 and July 1, 1989 to May 1, 1988 and May 1, 1989.
Appropriation: none
Revenue: yes
Fiscal Note: requested January 28, 1988
Effective Date:July 1, 1988
Senate Committee - Testified: Councilman Bill Reams and Commissioner John McBride, Washington Association of Counties (for); John Okamoto and Tracy Grayson, Association of Washington Cities (for); Cris Crumbaugh, VATA (for); Nancy McCormack, ETC (for); Jim Durand, SCITT (for); Leo Sweeney, Washington State Transportation Commission (for); Larry Kinney, Washington State Labor Council (for); Bob Dilger, Washington State Trades Council (for); Sam Kinville, AFSME (for); Joe Daniels, FPTE (for); Duane Berentson, DOT (for); Steve Dennis, Quadrant (for); John Bannon, Consulting Engineers Council of Washington (for); Penny Peabody, Seattle/King Co. Economic Development Council (for); Roland Dewhurst, AGC of Washington (for); Al DeAtley, Superior Asphalt (for); Steve Lindstrom, Washington State Transit Association (for); Martin Sangster, Washington Trucking Association (for); Bob Teshera, Washington State Good Roads Association (for); Tim Hamilton, AUTO (against); Doug Bohlke, Taxi Association